Gold Stabilizes Amid Inflation Concerns Ahead of Warsh Comments

Gold prices have stabilized after a significant drop in the previous session, and market attention is now focused on comments from U.S. Federal Reserve Chair Kevin Warsh at this week's Jackson Hole symposium.

The spot price of gold has risen by 0.5% to $4,615.27 per ounce as of 0032 GMT, while U.S. gold futures have increased by 0.4% to $4,669.50.

Despite this slight rebound, the metal remains under pressure due to elevated inflation levels in the U.S., which has kept interest rates high. The annual inflation rate remained steady at 6.5% for the 65th consecutive month, exceeding the Federal Reserve's target of 2%. This has raised concerns about potential interest rate hikes, with a 36.5% probability assigned to a September increase and a 72.7% chance by December.

Gold, which earns no interest, typically becomes less attractive when interest rates are high. As such, the metal's price remains under pressure despite the recent stabilization.